MOLOGEN

DE: MGN

€15m market cap

€0.98 last close

MOLOGEN is a German biotech company developing cancer immunotherapies. The lead product is lefitolimod (MGN1703) for metastatic colorectal cancer maintenance, SCLC and HIV. Development of MGN1601, a therapeutic renal cell vaccine, would be reinitiated on successful out-licensing of lefitolimod.

Investment summary

MOLOGEN has announced that its pivotal Phase III IMPALA trial testing lefitolimod as a maintenance therapy in patients with metastatic colorectal cancer (mCRC) has missed its primary endpoint of overall survival (OS). As a result, we have removed from our valuation lefitolimod’s prospects as a monotherapy in mCRC and small cell lung cancer (SCLC) (previously 72% of our valuation). MOLOGEN will focus on the development of lefitolimod and EnanDIM in combination with other therapies. Recently announced restructuring measures should reduce monthly cash burn to €0.8m from the current rate of €1.4m. We note gross cash as of 30 June 2019 was €6.0m, which should enable funding into Q419. We value MOLOGEN at €50.4m (€4.1/share) vs €169m (€18.2/share) previously.

Y/E Dec
Revenue (€m)
EBITDA (€m)
PBT (€m)
EPS (c)
P/E (x)
P/CF (x)
2017A 0.0 (18.7) (19.3) (2.81) N/A N/A
2018A 3.0 (11.3) (11.9) (1.28) N/A N/A
2019E 0.1 (13.6) (14.0) (1.13) N/A N/A
2020E 0.0 (9.4) (9.9) (0.80) N/A N/A
Last updated on 06/09/2019
Industry outlook

Immunotherapies are among the most promising class of products for cancer. Mologen’s lead asset lefitolimod is an immunotherapy in development for both cancer maintenance and combination therapies.

Last updated on 06/09/2019
Sector
Healthcare
Share price graph
Balance sheet
Forecast net debt (€m) 7.3
Forecast gearing ratio (%) 68
Price performance
%
1m
3m
12m
Actual (68.7) (58.0) (78.1)
Relative* (66.4) (55.3) (76.8)
52-week high/low €19.6/€4.3
*% relative to local index
Key management
Walter Miller CFO
Dr Matthias Baumann CMO